UK oil and gas sector ‘missing opportunities on collaboration’

Oil and gas companies in the UK are missing opportunities to boost the sector. That’s due to a lack of collaboration which doesn’t let firms increase the potential value from the […]

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By Jacqueline Echevarria

Oil and gas companies in the UK are missing opportunities to boost the sector.

That’s due to a lack of collaboration which doesn’t let firms increase the potential value from the UK Continental Shelf (UKCS), stated a survey by Deloitte.

It added 90% of 61 respondents admitted supply chain collaboration would play a “greater” role in their company’s success.

Around 74% said collaboration is key part in their businesses and the 31% of the respondents said main reason for collaboration is cost reduction.

Despite 20% said they are open to collaboration if the right leadership and incentives are in place, only 10% said leadership regularly highlights the importance of collaboration or includes it in their business strategy.

Deloitte believes that initiatives such as the Efficiency Task force launched by the Oil and Gas Authority (OGA) and Oil and Gas UK (OGUK) could be a “real drive for positive change” in the sector.

Nick Clark, Director in Deloitte’s consulting team and contributor to the research said: “The industry needs to address a number of practical, cultural and behavioural barriers that are standing in the way of realising this successful future.

“These include fundamentals such as a lack of effective financial incentives, a lack of clear communication and misalignment of expectations between operators and service companies in execution.”